Market integration outpaces regulatory convergence

The EFR says lead supervision must be implemented across Europe

Regulators need to do more to close down the ‘widening’ gap that exists between the pan-European nature of financial markets and the way such businesses are supervised, according to the influential group of insurance and banking executives that have formed the European Financial Services Roundtable (EFR). New legislation on the agenda, namely Solvency II, includes proposals for approaches such as lead supervision – as favoured by the EFR –and the EFR warns that without implementation of such an approach Europe’s competitive position will pay the price.